Millennials are generally better connected and informed than previous generations, but their life insurance attitude isn’t proactive.
Millennials top the charts in a lot of statistics. A report in Bloomberg reveals the average 26 to 39-year-old is faring better financially than previous generations. They’re also 15% more educated than their elders, according to Federal Reserve data. And Millennials are perhaps the most informed generation, thanks to growing up with the internet.
Despite these stats, Millennials overall aren’t using those resources to necessarily make better health decisions or obtain insurance. Discover why this demographic is hesitant and why their choices may make having a life insurance policy even more important.
Information as a barrier, not a bridge
Before the internet provided ready access to information on every subject possible, people usually visited a doctor to discuss symptoms and receive recommendations and treatment. But most Millennials don’t see that as their first choice anymore. Instead, an internet search is a consultant, and self-diagnosis effectively the new norm.
A Harmony Healthcare study found that 73% of surveyed Millennials “search for medical advice online rather than going to a doctor.” The study also revealed that 48% would be less likely to consult with a doctor who wasn’t online.
And 45% of respondents have been putting off health issues, with the majority doing so for more than a year. This increases the chances of a life-threatening health condition advancing to untreatable levels. Fortunately, the survey revealed that 76% of Millennials do have a primary care physician. But they just aren’t using them often.
The top three reasons for this lack of action and the preferences for online searches and telemedicine are a general feeling of being healthy, a busy schedule, and the inconvenience of a practice visit. In addition, only 35% of Millennials have savings set aside for medical matters, making it less likely they could handle sudden and/or ongoing expenses.
The lack of a holistic approach to healthcare
A starkly contrasting view of Millennials is found in a survey highlighted by the American Hospital Association (AHA). In those results, 93% of Millennials actively wanted a relationship with their medical care provider—but they thought providers didn’t value them as people nor gave them comprehensive health guidance. Millennial respondents felt that they only mattered as patients when they were sick.
A widely perceived lack of connection with providers seems to be another reason this demographic is shying away from regular medical care. And unfortunately, this hesitance may up the risk factors for serious conditions that can become fatal.
A distrust of insurance and insurers
The AHA article highlights two other important statistics. Millennials are the least satisfied generation regarding insurer communication (38% aren’t impressed), and 47% don’t have faith in their current medical plan’s ability to provide the needed benefits.
And a survey conducted by IBM insurance specialists found that 46% of Millennials find life insurance an overly complicated subject and the policies too confusing to get through and sign. But 70% say they’d be likely or even very likely to consider locking down a policy if the benefits offered were clearer to grasp.
The research spotlights yet another reluctance factor among Millennials when it comes to life insurance. Namely, policies don’t interest some of this generation because there won’t be anybody left behind to benefit. Millennials are having fewer kids than ever, a fact that makes leaving a financial legacy a low priority for three out of five survey respondents.
Confidence in the future
It’s only natural for many Millennials to feel they have time, sidestep thoughts of mortality, and believe they have their lives planned out. Every generation does it, but they all eventually learn that today becomes tomorrow very quickly. And the longer Millennials wait to take out life insurance, the more expensive and difficult to obtain it will become.
Speaking with an experienced insurance provider is a great way to take proactive action and overcome the confusion that causes individuals to hesitate about opening a policy.
Reach out to NICRIS with any life insurance questions
Millennials are actually in the sweet spot to take out life insurance. Policies can prove more affordable than people think—especially at this age—and it’s never too early to put protection in place.
NICRIS Insurance can work with you to make every aspect of life insurance transparent while focusing on finding the right policy for your needs. If you have questions or would like a free, personalized insurance review, just drop us a line.